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Forex trading 101
Rule 1. Demands makes price go up.
Demand from where? EU?
Investor in Paris wants to buy US Bonds on Tuesday, he tells his banker "buy US bonds"
Banker sell Euro to Buy $. So $ demand is up Tuesday.
The successful trader bought $ on Monday, sold Tuesday
Rule 1. Demands makes price go up.
Demand from where? EU?
Investor in Paris wants to buy US Bonds on Tuesday, he tells his banker "buy US bonds"
Banker sell Euro to Buy $. So $ demand is up Tuesday.
The successful trader bought $ on Monday, sold Tuesday
Forex Trading
Rule 2: Supply makes prices fall
US wants to bomb Iraq, will fund war by borrowing a lot...dollars will be plenty.
So successful investors sell $ and but Swiss FR ..before US starts bombing
Rule 2: Supply makes prices fall
US wants to bomb Iraq, will fund war by borrowing a lot...dollars will be plenty.
So successful investors sell $ and but Swiss FR ..before US starts bombing
Forex Trading Rule 3.
You trade dual
Unlike Stocks, where you can buy Apple an wait, in currency trading, you take a long position (buy) and a short position (sell).
Your profit is spread
You move from high supply currency to low supply currency
You trade dual
Unlike Stocks, where you can buy Apple an wait, in currency trading, you take a long position (buy) and a short position (sell).
Your profit is spread
You move from high supply currency to low supply currency
Forex trading
Rule 4
You cannot make money from forex trading unless you make a big bet on the spread.
Lets say you short $ to go long Yen, the difference or spread is not up to 1.0000, at best 0.050 etc
So a $1000 bet is profit of $10..
But what about a $1,000,000 bet?
Rule 4
You cannot make money from forex trading unless you make a big bet on the spread.
Lets say you short $ to go long Yen, the difference or spread is not up to 1.0000, at best 0.050 etc
So a $1000 bet is profit of $10..
But what about a $1,000,000 bet?
Forex trading
This is the summary
1. You make money by taking a position before the event. Events move currencies.
2. You trade pairs, buy low supply, sell high supply
3. Leverage spread
This is why people lose money on forex...its difficult to predict the future.
This is the summary
1. You make money by taking a position before the event. Events move currencies.
2. You trade pairs, buy low supply, sell high supply
3. Leverage spread
This is why people lose money on forex...its difficult to predict the future.
Forex trading
Summary cont.
The individual trader is attempting to beat algorithms using d brain of tetrabytes to seek out $0.0001 spread opportunities in d Yen & cross with USD
Is it possible? Yes.
Some won a lot of money betting Leicester would win the EPL
Good luck
Summary cont.
The individual trader is attempting to beat algorithms using d brain of tetrabytes to seek out $0.0001 spread opportunities in d Yen & cross with USD
Is it possible? Yes.
Some won a lot of money betting Leicester would win the EPL
Good luck
If you are trading forex with less than $10,000,000 you are fetching water from a well with a spoon.
Those "schools" that teach you how to trade, you open an account right?You are trading based on what they told you?
I effect, you individual trades make up their "spread"
Those "schools" that teach you how to trade, you open an account right?You are trading based on what they told you?
I effect, you individual trades make up their "spread"
